Fortuna Silver Mines (NYSE: FSM) and Endeavour Silver Corporation (NYSE:EXK) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitabiliy and institutional ownership.
Volatility and Risk
Fortuna Silver Mines has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Endeavour Silver Corporation has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500.
This table compares Fortuna Silver Mines and Endeavour Silver Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortuna Silver Mines||12.88%||9.58%||7.22%|
|Endeavour Silver Corporation||5.35%||6.33%||4.63%|
Insider and Institutional Ownership
48.9% of Fortuna Silver Mines shares are held by institutional investors. Comparatively, 30.7% of Endeavour Silver Corporation shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Fortuna Silver Mines and Endeavour Silver Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fortuna Silver Mines||$232.40 million||3.50||$102.54 million||$0.18||28.39|
|Endeavour Silver Corporation||$151.67 million||2.66||$31.75 million||$0.06||52.83|
Fortuna Silver Mines has higher revenue and earnings than Endeavour Silver Corporation. Fortuna Silver Mines is trading at a lower price-to-earnings ratio than Endeavour Silver Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Fortuna Silver Mines and Endeavour Silver Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortuna Silver Mines||0||1||3||1||3.00|
|Endeavour Silver Corporation||1||4||4||0||2.33|
Fortuna Silver Mines presently has a consensus target price of $10.08, indicating a potential upside of 97.33%. Endeavour Silver Corporation has a consensus target price of $6.13, indicating a potential upside of 93.22%. Given Fortuna Silver Mines’ stronger consensus rating and higher possible upside, analysts plainly believe Fortuna Silver Mines is more favorable than Endeavour Silver Corporation.
Fortuna Silver Mines beats Endeavour Silver Corporation on 12 of the 14 factors compared between the two stocks.
About Fortuna Silver Mines
Fortuna Silver Mines Inc. is a Canada-based mining company engaged in silver mining and related activities in Latin America, including exploration, extraction and processing. The Company operates the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru and the San Jose silver and gold mine (San Jose) in southern Mexico. The Company’s segments include Corporate, Bateas and Cuzcatlan. The Company owns interest in the Caylloma mine and related mining concessions located in southern Peru. The Caylloma property is located in the Caylloma Mining District, approximately 220 kilometers north-northwest of Arequipa, Peru. The Company produces approximately 1.7 million ounces of silver and over 1,160 ounces of gold at Caylloma. The Company’s San Jose property, which covers a silver gold bearing epithermal vein system is located in the state of Oaxaca in southern Mexico. The Company produces approximately 4.9 million ounces of silver and over 38,530 ounces of gold at San Jose.
About Endeavour Silver Corporation
Endeavour Silver Corp. is engaged in silver mining in Mexico, and related activities, including property acquisition, exploration, development, mineral extraction, processing, refining and reclamation. The Company is engaged in exploration activities in Chile. The Company’s operating mining segments include Guanacevi, Bolanitos and El Cubo, which are located in Mexico, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile. The Company produces silver-gold from its underground mines at Guanacevi, Bolanitos and El Cubo in Mexico. Its exploration projects include Guadalupe y Calvo, Parral Mine, Terronera and Lourdes. The Company conducts its business primarily in Mexico through its subsidiary companies, such as Endeavour Gold Corporation, S.A. de C.V., Minera Plata Adelante, S.A. de C.V., Refinadora Plata Guanacevi, S.A. de C.V., Minas Lupycal S.A. de C.V. and MXRT Holdings Inc.
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